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Dynamics 365 Community / Forums / Finance | Project Operations, Human Resources, ... / Indian VAT on a Payabl...
Finance | Project Operations, Human Resources, ...
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Indian VAT on a Payables invoice

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Posted on by loz1981 45

Hi All 

My client is based in India and have presented the following issue with how to raise a Payables Invoice in GP 2016 R2:

Account Name  Debit  Credit
Professional Fees A/c Dr 100000
Transportation A/c Dr 10000
P- Input CGST 9% 9000
P- Input SGST 9% 9000
P- Input CGST 6% 600
P- Input SGST 6% 600
To 194 J @10% 10000
To 194 C @2% 200
To Vendor A/c 119000

The professional Fees and Transportation are separate PURCH amounts the rest of the Debits are TAXES as well as the top two Credit amounts which are setup as individual tax details with a negative percentage and the last Credit is the PAY line. 

the problem i have at the moment is that on the Header I can only put the full total of 110,000  so then when in the Tax Detail screen i try and split it out as follows but it wont accept the correct amount of tax (which is 19,200) 

Split-tax-Issue.PNG

Can anyone assist with how I can do this transaction in Payables Invoice or do I need to get them to raise it as a Purchase Order so we can separate out the lines?

Thanks in Advance

Laura

Categories:
Microsoft Dynamics GP
  • Cheryl Waswick Profile Picture
    Cheryl Waswick on at
    RE: Indian VAT on a Payables invoice

    Hi Laura, 

    I wasn't sure what your question was exactly on the first post, but I see now that you want the total tax amount to be $19,200.00 on the invoice header page (to include only the positive tax amounts), but to have a net of $9,000 on the Tax entry window (which includes the two negative tax amounts).   Dynamics GP has a verification in place that the total on the tax entry page has to equal the total Tax listed on the invoice header.  The total tax amount has to match between the windows, so if they need something different, you would have to get creative with perhaps keying a credit memo or something for the negative tax amounts to apply to the invoice with the positive tax amounts.   The credit memo wouldn't show as a tax type, but you could have it book to the proper GL tax account for the negative taxes, or put notes on it.  It would be a creative and manual process to do what you want. 

    (To note, I didn't say to mark the company option for 'require tax details to match pre-tax amount', I said to 'check to see' if you do have it marked, inferring that it should not be marked, as that is typically an option that users have to play with when it comes to taxes.)

    I don't know how VAT works in India, so you will need to speak to them more to understand the rules.  At this point, it doesn't appear that GP will allow what you want if the tax totals don't match.  If you want a Dynamics GP support engineer to assist you directly, you would need to open a support incident (billable) for assistance.  To do that, you can log your own case using the link below, or call in at 1-888-477-7877 to have help creating a support case.  

    https://serviceshub.microsoft.com/supportforbusiness

    Thank you, 

    Cheryl

    Microsoft Dynamics GP Support 

  • loz1981 Profile Picture
    loz1981 45 on at
    RE: Indian VAT on a Payables invoice

    Hi Cheryl

    If I set the "Require tax detail totals to match the pre-tax amount" it still wont allow me to enter the amounts as shown above. With Indian VAT the tax is both positive and negative percentages so it still only allows me to enter the 9000 on the header page as once it works out the different lines in the tax detail it takes the amounts off in negative and still gives me the difference. It looks like it is correct for how we would expect but with the way their VAT works they need to show the full 19200 VAT on the header.

    additional-tax-screenshot.PNG

    I have a call with them this morning at 9am GMT so might be able to have a chat with them about this but if they need to have this showing it may be worthwhile us having a chat if possible to discuss?

    Thanks 

    Laura

  • Cheryl Waswick Profile Picture
    Cheryl Waswick on at
    RE: Indian VAT on a Payables invoice

    Hello Laura,

    Go to Tools | setup | Company | Company | Options and see if you have the option marked for "Require tax detail totals to match the pre-tax amount'.  With this option marked, the taxes have to add up to the total tax amount on the header page.

    (Also, per your statement on doing this in Payables or POP, just be advised that if you are using VAT 100 or VAT Daybook for any VAT reporting, you may want to use POP.  I believe then each item is taxed and the taxable amount for each is added into the net amounts boxes 6-9 on the VAT Return.  If you use Payables, the total document amount is added to the boxes for each tax code, so the amount may get quadrupled.  So just something to think about if you are using the VAT Daybook or VAT 100 reporting in GP.   Using POP would be best when you have multiple tax codes on a single transaction.)

    Make sure to always TEST first in a TEST company before doing this in a production database.

    Hope this information helps. Please mark as answer if this helps you.

    Thanks

    Cheryl Waswick

    Microsoft Dynamics GP Support

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